Biotech Bigwigs ABBV, JNJ, BIIB & LLY Hit New 52-Week Highs

On Friday, stocks of four large drugmakers, Eli Lilly LLY, AbbVie ABBV, J&J JNJ and Biogen BIIB hit fresh 52-week highs. However, the rally in the four stocks was not driven by a single catalyst, but by an overall recent rally in the U.S. drug and biotech sector.The S&P Healthcare Index (XLV) has g…

On Friday, stocks of four large drugmakers, Eli Lilly LLY, AbbVie ABBV, J&J JNJ and Biogen BIIB hit fresh 52-week highs. However, the rally in the four stocks was not driven by a single catalyst, but by an overall recent rally in the U.S. drug and biotech sector.

The S&P Healthcare Index (XLV) has gained roughly 9% in the past month. Biotech ETFs have also significantly outperformed the broader market in the past month. SPDR S&P Biotech ETF (XBI) is up 16.4%, while iShares Biotechnology ETF (IBB) has risen 10.6% in the past month against the S&P 500 Index’s decline of 3.4% in the same timeframe.

Strong quarterly results, pipeline and regulatory successes, accelerating M&A activity, and favorable macroeconomic data are the major factors driving growing investor confidence in the drug and biotech sector.

In addition to these, strong company-specific news also contributed to the four stocks hitting new 52-week highs on June 26.

Here is a chart showing the price movement of these four stocks in the past month.

Let’s break it down

Eli Lilly

The stock of Eli Lilly hit a new intraday 52-week high of $1,215.76 on June 26, driven by a couple of company-specific news items. The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) issued a positive opinion recommending the approval of Lilly’s drug, Jaypirca (pirtobrutinib), for the treatment of adults with chronic lymphocytic leukemia (CLL) across all lines of therapy, regardless of prior BTK inhibitor treatment. If approved by the European Commission, the recommendation would expand Jaypirca's indication in the European Union beyond its current use, with a final decision expected within one to two months.

Lilly also announced additional details of its Medicare GLP-1 Bridge program, which will allow eligible Medicare Part D beneficiaries to access its newly launched once-daily oral GLP-1 pill, Foundayo (orforglipron) and blockbuster GLP-1 injection, Zepbound (tirzepatide) for obesity beginning July 1, 2026, at a cost of $50 per month with prior authorization. The program, which runs through Dec. 31, 2027, marks the first broad Medicare Part D coverage pathway for GLP-1 obesity medicines for eligible patients meeting CMS clinical criteria.

Lilly’s bullish run does not seem to stop as it is the largest drugmaker valued at more than $1 trillion, with its stock trading above $1,000 per share.

The company has one of the strongest growth profiles in big pharma. Lilly's biggest strength is its dominance in the rapidly expanding obesity and diabetes market. Its blockbuster drugs, Mounjaro for type II diabetes and Zepbound for obesity, have become some of the fastest-growing medicines in pharmaceutical history, gaining from enormous global demand for GLP-1 therapies.

Lilly is also developing several next-generation, more powerful and more convenient GLP-1–based treatments, including oral options and multi-acting candidates.

In early April 2026, Lilly gained FDA approval for Foundayo for treating obesity. Foundayo, which offers the benefits of GLP-1 therapy in a pill form, can prove to be a commercial game-changer for Lilly.

The company is evaluating another next-generation candidate, triple-acting incretin, retatrutide, in type II diabetes and obesity, along with other indications like obstructive sleep apnea, knee osteoarthritis and chronic low back pain, in late-stage studies. Retatrutide represents a new generation of “triple-action” therapy as it targets three biological pathways — GLP-1, GIP and glucagon — whereas existing medicines mostly act on one or two biological pathways. The candidate has demonstrated approximately 28% weight loss in late-stage studies. Lilly plans to seek approval for retatrutide for obesity and knee osteoarthritis pain in 2026. If approved, retatrutide could become another multibillion-dollar product.

Lilly has also embarked on an aggressive M&A spree in 2026, acquiring and partnering with biotech companies across oncology, neuroscience, cardiovascular disease, gene editing and vaccines to diversify its long-term growth drivers beyond GLP-1 therapies. The company has announced more than $20 billion in biotech deals this year.

AbbVie

AbbVie stock also hit its current 52-week high of $253.35 on Friday. AbbVie announced on Friday that the FDA has approved its blockbuster drug, Skyrizi, for treating pediatric patients with moderate-to-severe plaque psoriasis. Last week, the European Commission also approved Skyrizi for pediatric use.

AbbVie has been one of the stronger-performing large-cap pharmaceutical stocks in recent months. Its recent advance was driven by strong investor sentiment following its $10.9 billion proposed acquisition of Apogee Therapeutics APGE, which strengthened its long-term immunology pipeline.

AbbVie has successfully navigated the loss of exclusivity (LOE) of its blockbuster drug, Humira, which once generated more than 50% of its total revenues. It has accomplished this by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications, and should support top-line growth in the next few years.

AbbVie is also benefiting from strong momentum outside immunology. The oncology franchise remains anchored by Venclexta and Elahere, while the neuroscience portfolio is also contributing to top-line growth. The company has been on an acquisition spree over the past couple of years to bolster the early-stage pipeline that should drive long-term growth.

ABBV delivered robust net sales growth in 2025, which was just the second full year following the Humira LOE in the United States. AbbVie expects another year of robust growth in 2026. It expects total revenues to rise around 10% in 2026. It expects high single-digit revenue growth through 2029, as the company has no significant LOE events for the rest of this decade.

J&J

J&J stock hit its current 52-week and all-time high of $255.11 on Friday and closed at $255.08. We believe the stock’s move to a 52-week high reflected a combination of strong operational execution, an improving earnings outlook, confidence in its drug pipeline and strategic investments, though the company did announce a small news on Friday.

CHMP recommended approval of an expanded indication for J&J’s oncology drug, Tecvayli, in combination with daratumumab for adults with relapsed or refractory multiple myeloma who have received at least one prior therapy. If approved by the European Commission, the regimen could be used as early as second-line treatment.

J&J’s biggest strength is its diversified business model, as it operates through pharmaceuticals and medical devices divisions.

J&J’s Innovative Medicine unit is showing a growth trend despite the LOE of the blockbuster drug, Stelara. Growth is being driven by J&J’s key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth. The company’s MedTech business has improved in the past four quarters.

The company has also rapidly advanced its pipeline in the past year, attaining significant clinical and regulatory milestones that will help drive growth through the back half of the decade.

J&J expects 2026 to be a year of accelerated growth. The company expects both its Innovative Medicines and MedTech segments to deliver stronger growth this year. The company is confident that it can achieve its target of generating around $100 billion in revenues in 2026. It expects sales to continue to improve in 2027, with a “line of sight” to double-digit growth by the end of the decade. J&J believes that it is already achieving this growth. Though J&J’s total revenues are currently rising in a mid-single-digit range, excluding Stelara, J&J’s top line grew in a double-digit range in the first quarter.

Biogen

Biogen stock hit its current 52-week high of $218.06 on Friday. The stock has done well recently due to several positive developments, including the proposed $1 billion acquisition of RayThera, which will expand its immunology pipeline and the FDA’s breakthrough therapy designation to pipeline candidate, salanersen for treating spinal muscular atrophy (SMA).

After several difficult years marked by declining MS revenues, concerns about Alzheimer’s commercialization and pipeline skepticism, investor sentiment has improved due to stronger earnings, a more diversified growth portfolio, major M&A activity and growing confidence in late-stage pipeline assets. It seems investors are gaining confidence that the company’s multiyear turnaround is gaining traction.

Amid declining demand for its key multiple sclerosis drugs like Tecfidera and SMA drug, Spinraza, Biogen believes its new products, Leqembi (partnered with Eisai) for Alzheimer’s disease, Skyclarys for Friedreich’s ataxia and Zurzuvae for depression, have the potential to revive growth.

With competition in the MS market intensifying, Biogen has successfully diversified its pipeline across areas like Alzheimer's, immunology and rare disease. Biogen has strengthened its mid-to-late-stage neurology and immunology pipeline with M&A deals. Among some recent deals, in April 2026, Biogen closed its acquisition of Apellis Pharmaceuticals, adding the commercialized medicines Empaveli and Syfovre for immune-mediated retinal disease and nephrology to its commercial portfolio. Biogen expects the acquisition to boost its near-term growth and help offset the near-term top-line decline of the MS franchise. Also, in May, Biogen acquired exclusive rights to felzartamab in China from TJ Biopharma.

However, its newer drugs, Leqembi, Skyclarys, Qalsody and Zurzuvae are currently insufficient to offset the near-term top-line decline of the MS franchise.

Zacks Rank

LLY, ABBV, BIIB and JNJ have a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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